Nanotechnology is an emerging science in food production and processing sector, yet the role of nanotechnology in food safety has not been comprehensively reviewed. This study reviewed the types, sources and mode of actions of the nanoparticles used in the food systems. Additionally, the effect of nanoparticles on animal health and safety of the products of animal origin was evaluated. Moreover, retention of nutritionally important nanoparticle minerals in the animal systems and foods of animal origins was analyzed. Furthermore, food safety was critically evaluated in terms of antioxidative ability, antibacterial properties, and toxicological studies. Finally, the scope of nanoparticle-based functional foods and shelf-life enhancement using active packaging was discussed. The article concluded that although significant research has been done on the use of nanoparticles in food systems, yet commercialization of nanoparticle-based foods needs further investigation.